Im not too fond of executive orders, but there are too many unfounded claims that minimum wage will have some inordinately negative impact on the economy, based upon nothing more than theory. Let’s leave government contractors out of the equation for simplicity and just take a few of the very basic minimum wage industries and apply the expenses With a rise of 3.25/hr in the federal minimum wage ($0.40/hr more than the proposed raise) and using the BLS numbers as recipients, we’re talking an increase to ALL industries combined within the US paying minimum wages of $11.7 billion. Now; if we apply this cost to McDonald’s ALONE, we would see an increase of $2.02 per hamburger (JUST HAMBURGERS, no other food stuff from McD’s included). And; if we spread that out over the top burger sellers; McDonald’s, Burger King, Wendy’s, Dairy Queen, Arby’s, Sonic, Jack in the Box, Hardees, Carl’s Jr., and the 7 remaining major burger chains (total of 16 considered) the average impact on burgers alone would be a paltry $.32 per burger. And that, as indicated, is for BURGERS ONLY; this doesnt include the plethora of other food things sold by these 16 fast food businesses. Nor does it include any of the other fast food businesses such as pizza chains, sandwich chains, Mexican food, Chinese food, etc. which would share the burden. In essence; how would the increase in the minimum wages impact the businesses which would carry the bulk of the burden? How would it impact you? So little it wouldnt even be worth the time to calculate the change. When we include large retail outlets such as Walmart, K-mart, etc? Well, you get the picture. With the poverty level for an average family size of 3.14 according to the 2010 census (and yes, many families are depending upon minimum wage earnings now), the proposed raise to $10.10/hr would barely lift the average family above poverty level and that’s IF they work a full time job = 2080 hours per year. They deserve a break today, so why not give it to them, those who need it the most? We can debate theory until our lips fall off, but that would be of little consequence to those earning minimum wage.
Posted on: Wed, 29 Jan 2014 05:23:49 +0000
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